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Reply # 37789 6-Jun-2006 10:14
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juha: I was thinking something similar earlier...  you'd go through 200MB in just a week I reckon with Windows Update running on top of the normal browsing. The overage charges plus tolls explain perhaps how Orcon can resell that plan below cost.


That is assuming that people actually run Windows Update. I don't because I don't see the point. I have never had a virus and I run other tools to protect my computer.




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Reply # 37791 6-Jun-2006 10:30
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The 200Mb plan is for people who only use it every few days and when they do they want to have the phone line free and a bit of speed with it. People who use it probably wont go over the cap

 
 
 
 


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Reply # 37793 6-Jun-2006 10:48
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bradstewart: The 200Mb plan is for people who only use it every few days and when they do they want to have the phone line free and a bit of speed with it. People who use it probably wont go over the cap


Even then trying to stay under 200MB is a joke. It'll be interesting to see what sort of overcap rates they charge.

Slightly OT but TelstraClear launch their nationwide ADSL service next month. I unfortunately missed out being part of the trial but from what I've heard it could be a breath of fresh air...


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Reply # 37795 6-Jun-2006 10:57
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sbiddle: Even then trying to stay under 200MB is a joke. It'll be interesting to see what sort of overcap rates they charge.


2¢ per MB.

500MB/month = $6.00 extra
1000MB/month= $16.00 extra

If my maths is correct, the $149.95 overcap max buys you 7.5GB on top of the 200MB included in the plan. Don't know what happens after that...




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Reply # 37796 6-Jun-2006 10:59
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TCL - Go the Aussies! They have our banks so they may as well grab our broadband dollar as well.





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Reply # 37797 6-Jun-2006 11:03
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bradstewart: The 200Mb plan is for people who only use it every few days and when they do they want to have the phone line free and a bit of speed with it. People who use it probably wont go over the cap


So you're saying the cornerstone of Xtra's and Orcon's campaigns is aimed at Grandma downloading her FW: FW: FW: emails?
No wonder dialup still has a lot of users that aren't migrating up.

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Reply # 37799 6-Jun-2006 11:14
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Bung: So you're saying the cornerstone of Xtra's and Orcon's campaigns is aimed at Grandma downloading her FW: FW: FW: emails?
No wonder dialup still has a lot of users that aren't migrating up.


I doubt you could call the 200mb plan the cornerstone. Pebble maybe

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Reply # 37800 6-Jun-2006 11:25
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bradstewart:
Bung: So you're saying the cornerstone of Xtra's and Orcon's campaigns is aimed at Grandma downloading her FW: FW: FW: emails?
No wonder dialup still has a lot of users that aren't migrating up.


I doubt you could call the 200mb plan the cornerstone. Pebble maybe


It's simply about getting your name in the market and promoting that you have the cheapest broadband deal. People realise the cheapest plan isn't necessarily the best for them and change but stick with the same company because they believe they offer value for money.. it's basic marketing!

The same $14.95 idea got a lot of companies in trouble in Australia where several providers promoting $19.95 broadband all ended up losing court cases for misleading customers.


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Reply # 37810 6-Jun-2006 12:51
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sbiddle: It's simply about getting your name in the market and promoting that you have the cheapest broadband deal. People realise the cheapest plan isn't necessarily the best for them and change but stick with the same company because they believe they offer value for money.. it's basic marketing!


I agree with you sbiddle, however a lot of consumers have no idea how much 200MB is, and no matter what you tell them, they just want the cheapest option  Frown.








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Reply # 37813 6-Jun-2006 12:59
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nzbnw:

I agree with you sbiddle, however a lot of consumers have no idea how much 200MB is, and no matter what you tell them, they just want the cheapest option Frown.



I agree too, notice how the ISPs advertise their speeds in terms of X times faster than dialup - they don't give the technical details.  But when it comes to caps, they say 200MB and assume the customer knows what that means.

Overall, though - this is a good sign that LLU may attract investment.  Even though it's only building on top of the copper network, it's still looking like providing competing products.  I couldn't see too many major players building cable networks on top of the ones already installed by TCL and Telecom.  TCL had a bad experience trying to get cable into Auckland and I'm betting that has scared off other big players with the capital to try to undertake a major project like that.



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Reply # 37819 6-Jun-2006 13:15
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For many cases on dialup, I was certainly pulling more than 200mb a month... even pulling down cd images time to time.

Sure it meant that no one could call most of the time however it worked out quite well compared to the xtras $29.95 a month for 200mb...

I wonder if this is going to turn out like their '256kbps flatrate' where once they get critical mass or sign a new agreement with Telecom you'll be forced to be put on a plan of their choosing.

Yuk, someones got a scrolling sig... is this a sign of things to come.




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Reply # 37833 6-Jun-2006 15:33
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cokemaster: Yuk, someones got a scrolling sig... is this a sign of things to come.


Its gone now . . . Laughing

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Reply # 37853 6-Jun-2006 22:06
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juha: I was thinking something similar earlier... you'd go through 200MB in just a week I reckon with Windows Update running on top of the normal browsing. The overage charges plus tolls explain perhaps how Orcon can resell that plan below cost.


Windows update will cause a bump in the first few days as it gets it self sorted out.  This is a gotya for new users as it won't happen a second time but will put the user over their limit in the first day if they've connected a couple of machines.

I'm sure Orcon are a smart company and their service people would simply switch a user to a different plan if they go over the data cap.  However the low cost of additional data means that the user isn't going to get hit that hard before a warning email tells them they're over their limit - I assume they have limit emails.

Reailty check.  A good sales person for the company will sell users up when they phone in to join up.  Some users will swap to the smaller plan to reduce their costs  becaue they're simply not using the capacity they've got now.

This style of loss leader has been very effective in Australia and used by a number of the large providers.

Cheers Don




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